WHY NATIONS TRADE

Word	Spanish Equivalent	English Meaning
Expertise	Pericia/Habilidad	To have abilities to do something
Surplus	Superávit/Excedente	an amount which is more than is needed
Encourage	Fomentar/Estimular	to make something more likely to happen
Raise	Alzar	to lift something to a higher position
Labour	Trabajo/Mano de obra	people who do practical work with their hands
Benefit	Beneficio/Bien	a helpful or good effect, or something intended to help
Decline	Declive/Disminución	to become less, worse, or lower
Retaliate	Contraatacar/Responder	to hurt someone or do something harmful to them because they have done or said something harmful to you
Prevent	Impedir	to stop something from happening or someone from doing something
Restrict	Limitar/Restringir	to limit something or prevent it from increasing
Customs	Aduana	Institution who makes sure people are not taking goods into a country without paying taxes
Delay	Demorar/Retrasar	to make something happen at a later time than originally planned or expected

1. Find three (3) reasons given in the text for why nations trade.

Becuase it lacks raw materials, capital or technology.
Allows a greater variety of goods and services.
Makes grow up the economy of the country.

2. What are some of the advantage and disadvantages of protectionism?

Adventages: Protectionism reduces imports for improve the balance of trade, protects declining industries from creating further structural unemployment, puts tariff and quotas for protect home industries.
Disadventages: Invites retaliation from foreign governments, prevents countries enjoying the full benefits of international specialization and trade.

3. What is a tariff and what is a quota? Use the specialist dictionary for the definition.

What are the effects of tariffs and quotas on trade? Give at least two (2) examples of each.

A tariff isa charge or list of charges either for services or on goods entering a country. The tariff raises the price of the imports and the revenue of the goverments, also reduce the demand of the imports.
A quota is a fixed, limited amount or number that is officially allowed, in this case a limit in the imports. The quotas encourage the demand of domestically made subtitutes and reduce the volume of imports.

4. What other protection techniques are mentioned in the text?

Administrative practices can discriminate against imports through customs delays or setting specifications met by domestic, but not foreign, producers. And currency restrictions prevent domestic residents from acquiring sufficient foreign currency to pay for imports.

Why Nations Trade